ING Australia has added 11 basis points to the interest rate on owner occupier mortgages with loan-to-valuation ratios above 90 per cent.
The rate rises from 2.94 per cent to 3.05 per cent for high-LVR borrowers with an Orange Advantage loan and from 2.89 per cent to 3 per cent for borrowers with a Mortgage Simplifier loan.
Canstar finance expert Steve Mickenbecker said more lenders were pricing for risk.
Mickenbecker said that so far this year Adelaide Bank, Credit Union SA, Freedom Lend, Homestar Finance, Newcastle Permanent, People’s Choice Credit Union and QBank have also increased rates for some groups of borrowers.
“Lenders are aggressively chasing market share at the moment but they want borrowers who are at the quality end of the market,” he said.
At the same time, ING is cutting investor mortgage rates. It has cut the variable rate for investors with both principal and interest and interest-only loans by 5 bps on its Orange Advantage and Mortgage Simplifier loans.